MUMBAI: In a landmark decision, chief minister Devendra Fadnavis has cleared decks for establishing the housing regulatory authority and the housing appellate tribunal.

“After the proposal was mooted by state housing minister Prakash Mehta, the CM has approved the crucial proposal. Since Fadnavis has agreed in-principle, we expect that a housing regulator will be appointed as early as possible,” said a senior bureaucrat.

Transport secretary Gautam Chaterjee, a 1982-batch IAS officer, who is due for retirement on January 31, 2016, is emerging as the top contender for the post. “As housing secretary, Chaterjee was instrumental in drafting the bill. After the Maharashtra government piloted the proposal, even the Centre introduced an identical proposal,” the bureaucrat added.

The erstwhile Congress-NCP government had introduced the bill to protect the interest of flat owners and take erring builders to task three years ago. After it was passed in both the houses of the state legislature, it was submitted to the Centre for Presidential assent. However, it was delayed since the Centre had informed the state government that it was also in the process of bringing in a similar legislation. Later the President granted assent to the proposal and it paved the way for setting up of the housing regulatory authority.

The housing legislation puts the onus on the promoter to enter records and details of projects on the authority’s website. The new law mandates that the promoter will main a separate account of sums taken as advance or deposit. “Under the new legistation, it will be the builder’s responsibility to pay outgoings till the property is transferred. There shall be no alterations without consent after plans are disclosed. No mortgage will be created without the consent of parties after execution of the sale agreement,” said another official. The promoter will have to take steps for the formation of cooperative societies.